Finance professionals expect less emphasis on ESG and DEI

More than half of senior professionals in UK financial services believe their employer will place less emphasis on DEI and sustainability in the future, according to new research.

CRIF, a provider of consumer and credit information, found that 56% of senior finance workers thought their leaders would deprioritise environmental, social and governance (ESG) goals, while 54% said the same for diversity, equity and inclusion.

However, these perceptions are at odds with how employees feel about the importance of ESG and DEI for attracting customers.

Across Europe, 45% of consumers are worried that financial institutions will backtrack on diversity and ESG principles, according to CRIF’s research, due to shifts in attitudes in the US.

Younger consumers are more likely to worry about financial institutions dialling down on diversity and ethical concerns, with 55% of those between 18 and 24 stating this to be the case.

CRIF’s report, Banking on Banks 2025: A decade of transformation in financial services, found that 97% of finance professionals’ employers were engaged in at least one ESG-related activity.

This could include encouraging customers to go paperless or embedding DEI into their company mission, it said.

There is growing consumer demand for ethical and environmentally conscious finance products, with 49% of European consumers saying they have benefited from access to such products.

There has been some evidence that financial services employers are placing less emphasis on DEI and ESG principles, however.

Earlier this year, Barclays and NatWest changed their remuneration policies to remove climate goals from their bonus schemes for senior executives. Lloyds also reduced its diversity targets for senior staff related to bonus payments.

Law firm GQ Littler recently found that a number of UK-owned global companies were being less vocal about their commitments to DEI, after directives from US President Donald Trump against inclusion initiatives.

“We have already started to see some multinational companies pull back DEI initiatives in the US while simultaneously reinforcing their commitments in the UK and elsewhere, and we expect that trend to continue,” the firm said.

Sara Costantini, regional director for the UK & Ireland at CRIF, said: “In the UK and EU, ESG has become a core component of business practices, bolstered by a strong regulatory framework.

“Recent rollbacks around DEI in the US have raised concerns among consumers, and perhaps more worryingly, those working within the sector, who fear a damaging ripple effect on current commitments.

“As has been firmly established over the past decade, ESG is not a mere trend, but a significant differentiator in the financial sector that can influence consumer trust and loyalty. Banks, insurers and other providers must navigate current political changes carefully amid a market that clearly continues to value social responsibility.”

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